Assessment of the investment value of liquidity

The author of the article solves the problem of the investment choice between cash and income-generating assets, for example, bonds. A possible approach to assessing the investment value of liquidity, expressed in absolute and relative forms, is described. The concepts of equalizing interest rate, compensatory equivalent, general and additional liquidity are introduced. Expressions are proposed for assessing the value of total and additional liquidity of monetary funds and the illiquidity of non-monetary assets (settlement instruments are the utility functions of non-monetary assets and monetary funds, as well as the costs of their liquidity). It is shown that liquidity depends both on the spread costs of the market and on the available investment alternatives and the probability of their occurrence during the holding period of the owner of non-monetary assets.